Transfer pricing describes the legislation and guidelines used to select and support “arm’s length” prices charged between associated parties.
The arm’s length principle is key to transfer pricing and is the price which two unrelated parties would agree to pay for a product or service in the open market. Many tax authorities, including the UK, require transactions between associated parties to be recognised at ‘arm’s length’ prices for tax purposes. Multinational groups which fall within the transfer pricing legislation of a particular jurisdiction are required to maintain transfer pricing documentation to support the arm’s length nature of their controlled transactions.
Our experienced and dedicated transfer pricing team can assist you with:
- Designing your transfer pricing policies.
- Preparing your transfer pricing documentation, including coordinating transfer pricing documentation projects across multiple overseas territories.
- Undertaking economic benchmarking analysis to establish arm’s length prices.
- Operational transfer pricing, including assisting with the practical implementation of your transfer pricing policies.
- Transfer pricing controversy.
- General transfer pricing advice and the restructuring of existing policies.
- Reviewing inter-company arrangements to identify other potential tax issues, such as withholding tax or VAT.
